used car business plan in india

How to Start Used Car Dealership Business In India

Souvik Dey , Atish Ranjan Das

A used car dealership business in India means that selling used cars to customers who are looking to own a vehicle but their savings money does not allow them to buy from ex-showroom price and earn profits. The COVID-19 (Coronavirus Disease) pandemic has placed the automotive industry at great disruption. Starting a user car dealership business in India will be profitable, where cars have to be brought from their owners at a lower price than you will sell later. IBISWorld reports the used car dealership industry has had a net decline over the past five years, due to coronavirus, at an average annual rate of -1.6% . In the upcoming years, this industry's 129,553 businesses are forecast to see $ 99.1 billion in collective revenue. Nowadays people need more cars due to their daily transportation. The globally used car market size was valued at USD 1,332.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% from 2020 to 2027.

As there is the rise in the cost of new cars in the market also the increasing rate of interest on car loans has resulted in a shift in consumer preferences from purchasing brand new cars to buying used cars. In this article, we will discuss in brief how you will begin this car dealership business.

Key Segments of Used Car Dealership Industry

The inability of customers to buy new cars became one of the reasons for the growing sales of used car volume.
These dealership networks helped market participants to brand and make used car options.
The added quality and reliability of used cars changed the consumer attitude and increased the sales of the used passenger cars.
Investing in used car management has become one of the market’s requirements characterized by slimming margin, relentless competition, and demanding consumers.
High disposable income
Rising demand for luxury cars
The shorter period of car ownership
Increasing preference of the owner of a two-wheeler to upgrade to a compact car

External Factors Affect the Used Car Dealership Industry

Several factors affect the performance of the used car dealership industry:

Per capita disposable income – When customers have more money to spend, they become more willing to spend on expensive discretionary items, such as used cars.
Price of new cars – Buying a used car is a more affordable alternative to purchasing a new car.
Aggressive age of vehicle fleet – As the average age of vehicle fleets increases, it represents greater demand for vehicles.
World price of crude oil – High gasoline prices tend to decrease new and used vehicle sales.

Used Car Dealership Business Plan

A business plan is a blueprint that is necessary for running any business successfully. When you have a well-defined business plan the scope for trial and error in the actual business scenario. The primary objective of a used car dealership business is 100% customer satisfaction. After that, the business will aim to achieve and exceed the average profit margin within the first two years of business. The main mission must be to provide a hassle-free car buying experience with the main focus on customer satisfaction. After you select your location where you intend to start your business then you have to do work with the facts, indices, and other figures in the industry.

The dealership also provides job satisfaction to its employees by rewarding their efforts with bonuses and incentives. One important thing is to fulfill the buyer’s need for safe and quality transportation by providing them used cars that match or exceed their expectations.

After doing all the necessary objectives you need to bring together a proactive team of professionals who have some experience in the field. The network of suppliers that can help in buying and selling cars of optimum quality at attractive prices.

Used Car Dealership Business Start-Up Cost

The start-up costs of a used car dealership will be financed through short-term loans, owners' investment , and long term loans. The costs depend upon the following factors:

Stationary and office supplies
Accounting consultation fees
Office or plot rent
Legal fees for a business establishment such as ownership and no sell agreement
Marketing or advertisement fees
Web presence and online advertising expenses
Equipment such as desks, computers, telephone, fax/copier, and office furniture
Surety bond

Global used car market share, by sales channel 2019(%)

Economic Analysis of Used Car Dealership

This new wave of digital retailing represents more than technology alone because it focuses on the importance of the customer experience in the used-car buying process.

Highlights of used car dealership business:

Complete end to end purchasing capabilities( 59% of buyers)
Extensive vehicle data and photos along with effective search tools ( 64% of buyers)
Unique delivery options( 28% of online buyers)

Legal Aspects of Starting Used Car Dealership

Your business goal will decide the legal entity, you must choose for your used car dealership business. When you are starting with a moderate amount of capital, you can choose to be the sole proprietor of your entity.

Some of the legal documents you will need to run a used car dealership business are :

Business and liability insurance
Certificate of incorporation
Tax Payer’s ID
Fire certificate
Used Car Dealership License
Business Plan
Non-disclosure Agreement
Employee’s Handbook(optional)
Facility permit/ license
Franchise or Trademark License
Insurance Policy

Choosing Location for Used Car Dealership

A car dealership requires a parking lot where you can park the cars and display them, as well as an indoor office space where all the administration is done. Before you search for a location you will consider the following points:

Demographics
Number of existing used car dealerships in the location
Accessibility
Local laws of the region or state
Security, safety, parking space
The purchasing power of the people residing there

Awareness of Used Car Dealership Business

None of the business is running without promotion and the same goes with the used car dealership business. Uniform promotion efforts are important to get noticed. The way you show yourself people perceive you in that way. Nowadays social media has emerged as the greatest platform for brand promotion and is very effective.

Some ways of brand promotion are as follows:

Sponsor community programs that are relevant to you
Give advertisements in newspaper, magazines, radio, and TV stations
Place hoardings in a target location that will get your business noticed
Distribute pamphlets
Some introductory letters in your location introducing people to know about your business
Take reviews from your initial customers and promote them because this way you will make trust

Looking for Distribution Network for Used Car Dealership Business

Being a member of a good network of used car dealers, you will be able to establish ready links with people who are looking to sell used cars. The Internet is a fantastic platform for advertisement and you must put your best foot forward in gaining leverage from it.

The impact of GST on Used Car Dealership Business

GST or Goods and Services Tax is usually charged on the transaction value of goods. Indian Automobile industry mostly benefited after the implementation of the new tax regime. As per the Goods and Services (GST) Act, a registered dealer buying from an unregistered dealer will be entitled to pay tax under RCM, which simply means the registered dealer would subtract all taxes from the payment made to be the provider.

GST Impact on Buying a Used Car

If you are dealing in the market for a used car and are sifting through used car dealerships, you must have observed that the tax increased to 28 % from 5 % after the implementation of the Goods and Services Tax Regime. Previously, the used car dealers had to pay only 5 % tax value-added tax on the vehicles which are resold. Dealers generally keep their margin in the range of 10% to 20 % . It depends on the several factors of cars such as car type, age, and demand.

GST Impact on Selling a Used Car

If you are thinking to sell a used car, try searching for an organized car dealer nearby you who is offering second-hand vehicles at lower prices as compared to what you would expect for it. Generally, the dealers try to eliminate the tax burden either through the buyer and seller side or both.

The organized sectors and semi-organized sectors which cover approximately 21% of the market account are going to be benefited from the reforms and expected to grow by 36% and 12 % respectively against 17% unorganized sectors. Like dining, shopping, and entertainment, the car buying experience that people prefer is changing. The future of car dealerships is changing. The global used car market is expected to grow at a compound annual growth rate of 5.5% from 2020 to 2027 to reach USD 2,150.6 billion by 2027 . The Asia Pacific dominated the used car market with a share of 35.6% in 2019 , in terms of shipment. This is attributable to emerging economies, including India, which is dominated by unorganized players.

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Writing a Car Dealership Business Plan [Sample Template]

By: Author Tony Martins Ajaero

With a population of 1.324 billion as of 2016, india remains a vibrant market for whatever goods or services an entrepreneur decides to go into and if you are interested in starting a business in India, one of your options is to open a car dealership shop; a place where both used and new cars will be retailed. It is indeed a thriving and profitable business in India especially with the growing population of the middle class.

If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blue print of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services amongst others.

The truth is that it is one thing to have a fantastic business plan, but it is another thing for the business plan to translate to profits, which is why it is important to assemble a team of dedicated workers to work with if you want to be successful with your car dealership business.

Below is a sample car dealership business plan template in India that will help you successfully write yours with little or no stress.

A Sample Car Dealership Business Plan Template India

1. industry overview.

Players in the car dealership industry sell both brand new and used cars and they may fall into any of the following niche areas; brick and mortar car dealership shop, online used cars dealership shop, locally produced car dealership shop, imported car dealership shop, luxury car dealership business and multi – brand and multi – maker car dealership.

The auto industry in India is one of the leading auto industries in the globe. As a matter of fact, the auto industry contributes 7.1 per cent of the country’s Gross Domestic Product (GDP). The Two Wheeler segment with 80 percent market share is the leader of the Indian Automobile market owing to a growing middle class.

Additionally, the growing interest of companies in exploring the rural markets further helped the growth of the sector and the overall Passenger Vehicle (PV) segment has 14 percent market share.

Statistics has it that about 4 million cars are manufactured in India, one of Asia’s largest markets in the 2015/2016 fiscal year. The automotive industry in India is growing and becoming more important for Indian citizens with 14.9 million jobs projected to exist by 2022.

India is also one of the leading auto exporters in the world with positive export growth potentials going forward. Lastly, starting a car dealership business just like starting any other business might not be easy but it is a straight – forward business that can generate huge and steady profits if well positioned and properly managed.

People often think that starting this type of business does not require any professional skills; in as much as it is true, you would still need a good knowledge of automobiles, good business skills, bargaining skills and of course customer services skills if indeed you want to build a profitable car dealership business.

2. Executive Summary

Raj Ravi Khan® Car Dealership, Inc. is a registered car dealership shop that will be located in one of the busiest business districts in the city center in Mumbai – Maharashtra. We have been able to lease a facility that is big enough (a 4 thousand square foot facility) to fit into the kind of standard car dealership shop that we intend opening.

At Raj Ravi Khan® Car Dealership, Inc., we will be involved in the sale of both brand new and used cars from different manufacturers from India and abroad. We are set to service a wide range of clientele in and around Mumbai – Maharashtra.

We are aware that there are several car dealership shops all around Mumbai – Maharashtra, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online service option for our customers, and our garage is well secured with various payments of options.

Raj Ravi Khan® Car Dealership, Inc. will ensure that all our customers are given first class treatment whenever they visit our garage. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to. We will ensure that we get our customers involved in the selection of car brands that will be in our garage.

Raj Ravi Khan® Car Dealership, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize us.

Raj Ravi Khan® Car Dealership, Inc. is a family business that is owned by Raj Ravi Khan and his immediate family members. Raj Ravi Khan is an auto freak with good knowledge of various car brands manufactured both in India and abroad.

He has a robust business network with a host of car manufacturing companies in India. Raj Ravi Khan has plans to open Raj Ravi Khan® Car Dealership, Inc. all across the 29 states and 7 union territories (including a national capital territory) in India.

3. Our Products and Services

Raj Ravi Khan® Car Dealership, Inc. is in the car dealership industry to service a wide range of clients and of course to make profits, which is why we will make available a wide range of both brand new and used cars from top manufacturing brands in India and other countries of the world.

We will ensure that we do all that is permitted by the law of India to achieve our aim and objectives of starting the business.

4. Our Mission and Vision Statement

Our vision is to build a car dealership business that will become the number one choice for both corporate clients and individual clients in the whole of India.
Our mission is to establish a car dealership garage business that will make available a wide range of cars from top manufacturing brands at affordable prices to the residents of Mumbai and across all the States in India where we intend opening our car dealership garages and franchise.

Our Business Structure

Our intention of starting a car dealership business is to build a standard car dealership garage in Mumbai – Maharashtra. Although our car dealership garage business might not be one of the biggest in India, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will make sure that we recruit people that are qualified, honest, customer centric and are ready to work to help us build a prosperous car dealership business that will benefit all our stake holders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

Chief Executive Officer (Owner)
Garage Manager
Human Resources and Amin Manager
Merchandize Manager

Sales and Marketing Manager

Information Technologist

Accountants
Sales Agents/Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions.
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
Defines job positions for recruitment and managing interviewing process
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily office cum business activities.

Garage Manager:

Responsible for managing the daily activities in the car garage
Ensures that proper records of cars are kept and the garage does not run out of used cars
Ensures that the garage facility is in tip top shape and cars are properly arranged and easy to locate
Controls car distribution and supply chain inventory
Supervises the workforce in the car garage sales floor

Merchandise Manager

Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
Helps to ensure consistent quality of cars from different manufacturers are purchased and retailed in good price that will ensure we make good profit
Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
Models demographic information and analyze the volumes of transactional data generated by customer purchases
Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, executes and evaluates new plans for expanding sales
Documents all customer contact and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Manages the organization website
Handles eCommerce aspect of the business
Responsible for installing and maintenance of computer software and hardware for the organization
Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
Manages the organization’s CCTV
Handles any other technological and IT related duties.

Accountant

Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the organization
Serves as internal auditor for the organization

Client Service Executive

Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
Responsible for cleaning and washing all the cars in the garage at all times
Ensures that toiletries and supplies don’t run out of stock
Handles any other duty as assigned by the garage manager

6. SWOT Analysis

Our major aim of starting just one outlet of our car dealership shop in Mumbai – Maharashtra is to test run the business for a period of 7 years to know if we will invest more money, expand the business and then open other outlets in India.

We are quite aware that there are several car dealership garages all over Mumbai – Maharashtra and even in the same location where we have plans to open ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Raj Ravi Khan® Car Dealership, Inc. employed the services of an expert HR and Business Analyst with bias in car dealerships to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

This is the summary of the SWOT analysis that was conducted for Raj Ravi Khan® Car Dealership, Inc.;

Our business location, the business model we will be operating, varieties of payment options, wide range of both brand new and used cars from different manufacturing brands and our excellent customer service culture will definitely count as a strong strength for Raj Ravi Khan® Car Dealership, Inc.

From our findings, one major weakness that may work against us is the fact that we are a new car dealership garage in Mumbai – Maharashtra and we don’t have the financial capacity to compete with multi – million car garages that can afford to purchase fleets of cars in one fell swoop.

Opportunities:

A population of over 1.3 billion people and a growing population of the middle class in India provide us with unlimited opportunities to sell our cars to a large number of individuals and corporate organizations. We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our car garage; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new car dealership outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat to businesses such as ours.

7. MARKET ANALYSIS

Market Trends

The trend in India shows that the auto industry is set to witness major changes in the form of electric vehicles (EVs), shared mobility, Bharat Stage-VI emission and safety norms amongst other.

Electric cars in India are expected to get new green number plates and may also get free parking for three years along with toll waivers. India’s electric vehicle (EV) sales increased 37.5 per cent to 22,000 units during FY 2015-16 and are projected to rise further on the back of cheaper energy storage costs and the Government of India’s vision to see six million electric and hybrid vehicles in India in the nearest future.

If you have ever taken your time to study car patronage and usage in India, you will have noticed that Indians especially the middle class make use of cars that are manufactured in India. This goes to show that there is a thriving business for car manufacturers in India.

One notable trend in the car dealership industry is that most car dealers are leveraging on online stores to sell their used cars to a large market.

The used car dealership garage landscape has seen tremendous changes in the last 20 years; it has grown from smaller outlets to a more organized and far reaching venture. The introduction of franchise and online car dealership makes it easier for a car dealership garage to reach out to a larger market far beyond the areas where their physical store is located.

8. Our Target Market

Those who purchase cars cut across all genders above 18 years; hence the target market for car dealership business is all encompassing. In essence, your target market can’t be restricted to just a group of people, but all those who desire to own a car.

In view of that, we have positioned our car dealership garage to service the residents of Mumbai – Maharashtra and every other location where outlets of our car dealership garage will be located. We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us.

We are in business to retail a wide range of cars to the following groups of people and corporate organizations;

Middle Class Families
Upper Class Families
Corporate Organizations
Celebrities
Corporate Executives

Our Competitive Advantage

A close study of the global car dealership industry reveals that the market has become much more intensely competitive over the last decade especially with the advent of online car dealership stores. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the competition and we are prepared to compete favorably with other leading car dealership garages in Mumbai – Maharashtra and throughout major cities in India.

Raj Ravi Khan® Car Dealership, Inc. is launching a standard car dealership garage that will indeed become the preferred choice for people who live and work in Mumbai – Maharashtra and every other location where our outlets will be opened.

Our car dealership garage is located in one of the busiest business districts in the city center in Mumbai – Maharashtra. We will ensure that we have a wide range of cars brands from leading manufacturers both in India and abroad in our garage at all times. It will be difficult for customers to visit our garage and not see the type of car they are looking for.

One of our business goals is to make Raj Ravi Khan® Car Dealership, Inc. a one stop car dealership shop. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

Sources of Income

Raj Ravi Khan® Car Dealership, Inc. is in business to retail a wide range of both brand new and used cars to people in Mumbai – Maharashtra and every other location where we intend opening our outlets. Our source of income will be the retailing of a wide range of cars from different car manufacturing brands at affordable prices.

10. Sales Forecast

One thing is certain when it comes to car dealership business, if your garage has various brands of new and used cars from different manufacturing brands and is centrally positioned, you will always attract customers that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in and around Mumbai – Maharashtra and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.

We have been able to critically examine the car dealership industry in India, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Mumbai – India.

First Fiscal Year: INRs. 8 Million
Second Fiscal Year: INRs. 18 Million
Third Fiscal Year: INRs. 26 Million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within our market space. Please note that the above projection might be lower and at the same time it might be higher.

Marketing Strategy and Sales Strategy

Before choosing a location for Raj Ravi Khan® Car Dealership, Inc. we conducted thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for people and organizations in and around Mumbai – Maharashtra and every location where we intend opening our outlets.

We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the car dealership industry in India to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Mumbai – Maharashtra, India.

In summary, Raj Ravi Khan® Car Dealership, Inc. will adopt the following sales and marketing approach to win customers over;

Open our car dealership garage in a grand style with a party for all to attract people who live around our car dealership garage
Introduce our car dealership garage by sending introductory letters alongside our brochure to households, corporate organizations, businesses and other key stakeholders in and around Mumbai – Maharashtra
Ensure that we have a wide range of both brand new and used cars from different brands at all times.
Make use of attractive hand bills to create awareness and also to give direction to our garage
Position our signage/flexi banners at strategic places around Mumbai – Maharashtra, India
Position our greeters to welcome and direct potential customers
Create a loyalty plan that will enable us reward our regular customers
Engage in roadshows within our neighborhood to create awareness for our car garage
List our business and products on yellow pages’ ads (local directories)
Leverage on the internet to promote our business
Engage in direct marketing and sales
Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

In spite of the fact that our car dealership garage is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our car dealership garage. Raj Ravi Khan® Car Dealership, Inc. has a long-term plan of opening our car garages in various locations all around key cities in India which is why we will deliberately build our brand to be well accepted in Mumbai – Maharashtra before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Raj Ravi Khan® Car Dealership, Inc.;

Place adverts on community based auto newspapers, radio and TV stations.
Encourage the use of word of mouth publicity from our loyal customers
Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
Ensure that our we position our banners and billboards in strategic positions all around Mumbai – Maharashtra
Distribute our fliers and handbills in target areas in and around our neighborhood
Advertise our cars dealership business in our official website and employ strategies that will help us pull traffic to the site
Brand all our official cars and trucks and ensure that all our staff members and management staff wear our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

We are aware of the pricing trend in the car dealership industry which is why we have decided to build robust business relationship with car manufacturers in India so as to enable us get cars at good prices and also sell at good prices.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our cars are sold a little bit below the average price of various car brands in India. We have put in place business strategies that will help us run on low profit for a period of 6 months; it is a way of encouraging people to buy into our car dealership brand.

We know we don’t have the capacity to compete with big players in the car dealership industry but we will ensure that the prices and quality of all the cars that are available in our garage are competitive with what is obtainable amongst car garages within our level.

Payment Options

The payment policy adopted by Raj Ravi Khan® Car Dealership, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of India.

Here are the payment options that Raj Ravi Khan® Car Dealership, Inc. will make available to her clients;

Payment via bank transfer
Payment via credit cards / Point of Sale Machines (POS Machines)
Payment via online bank transfer
Payment via check
Payment via mobile money transfer
Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our cars without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our cars.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive car dealership business in Mumbai – Maharashtra, India and here are the key areas where we will spend our startup capital;

The total fee for registering the business in India – INRs. 9,200
Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – INRs. 15,700.
Marketing promotion expenses for the grand opening of Raj Ravi Khan® Car Dealership, Inc. in the amount of INRs. 13,000 and as well as flyer printing (2,000 flyers at INRs. 1.00 per copy) for the total amount of INRs. 8,980.
The cost for hiring business consultant – INRs. 4,000
Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – INRs. 15,000
The cost for payment of rent for 12 months at INRs. 6.00 per square feet in the total amount of INRs. 200,000
The cost for garage remodeling – INRs. 50,000.
Other start-up expenses including stationery (INRs. 3,000) and phone and utility deposits ( INRs. 11,000 ).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – INRs. 260,000
The cost for start-up inventory (stocking with a wide range of brand new and used cars from different manufacturing brands) – INRs. 12 Million
The cost for store equipment (cash register, security, ventilation, signage) – INRs. 23,750
The cost of purchase and installation of CCTVs: INRs. 10,000
The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): INRs. 50,000.
The cost of launching a website: INRs. 7,000
The cost for our opening party: INRs. 29,000
Miscellaneous: INRs. 10,000

We would need an estimate of INRs. 12.5 million to successfully set up our standard car dealership garage in Mumbai – India.

Generating Startup Capital for Raj Ravi Khan® Car Dealership, Inc.

Raj Ravi Khan® Car Dealership, Inc. is a private registered business that is solely owned and financed by Raj Ravi Khan and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

Generate part of the startup capital from personal savings
Source for soft loans from family members and friends
Apply for loan from the bank

N.B: We have been able to generate about INRs. 2.5 million (Personal savings INRs. 2 million and soft loan from family members INRs. 500,000 ) and we are at the final stages of obtaining a loan facility of INRs. 10 million from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Raj Ravi Khan® Car Dealership, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to retail our wide range of cars a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Raj Ravi Khan® Car Dealership, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Leasing of facility and remodeling the garage: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business both online and around the community: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Opening party planning: In Progress
Compilation of list of cars available in our garage: Car Dealership Business Plan
Establishing business relationships with manufacturers of cars in India and abroad, used car auction houses in India and abroad and other car dealership garages in and around Mumbai – Maharashtra, India: In Progress

No related posts.

Here Is How You Can Start Your Second Hand Car Business In India

Curated By : Business Desk

Local News Desk

Last Updated: March 04, 2023, 19:35 IST

Delhi, India

This article covers every aspect of opening a used car showroom, from conducting market studies to managing the business.

Consider the location where you want to establish your used car showroom when creating your business plan.

The demand for used cars in India is rising in India due to the increasing prices of new cars as well as the higher interest rates charged by banks on auto loans. Used cars are more popular than new ones among consumers. Additionally, in India the majority of people who want to purchase a car are unable to afford the ex-showroom price and many of them opt for used cars.

Market research

The demand for used cars in India has been growing since the last few years. According to reports, the Indian used car industry was estimated to be worth $ 24.24 billion in 2019 and that it is anticipated to grow at a CAGR of 15.12% between 2020 and 2025. So, before launching your businesses do your research about the market and the customers. This will give you a better idea about demand for used cars and the revenue potential of your targeted segment.

Creating a blueprint

Making a decision about the company objective is the first step in developing a business strategy, and when opening a showroom for used cars, this goal should be your top priority. It will bring you as many recommendations and brand recognition as feasible. When developing your business plan, take into consideration the location where you want to open your used car showroom as well as the pertinent facts, figures, and industry indices.

Capital need

If you have sufficient capital on hand, you are ready to go. If needed, you can get bank loans to fund your used car showroom. The initial expenses that may be incurred include the following:

· The monthly office or plot fee

· Legal expenses associated with establishing the company, such as ownership and no-sell agreements

· Other items like furniture, desks, laptops, phones,

· Costs of marketing and promotion, both online and offline

· Consultation Fees for the accountant’s office supplies

Read all the Latest Business News here

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What are the types of automobile businesses in India?

How to start an automobile business in india.

Plan and strategize: The first step towards opening a new business in any industry is to strategize a business plan and streamline business ideas. Your business plan should be detailed, flexible, and future-proof. This will help you overcome any forthcoming challenges instantly with ease.
Choose your industry: Choosing a field of operation for your business is the next significant step in the path of establishing a new automobile business. From a wide range of business options, you may choose single or multiple options based on your knowledge, expertise, and experience in the field. Thorough research and analysis determining the rate, scope, and pace of success in the industry must also be conducted, in addition to understanding competition, demand, and growth rates of demand in the industry. Investors and investments in the industry, the overall cost of operation and distribution, nature of the target buyer are a few other aspects for you to consider before starting your business.
Choose your location: Before you finalize the location for your business, you must ensure that it offers proximity, accessibility, and affordability of supply chains, low property, and rental costs, low cost of transportation, high population of target buyers in the local market, a high scope of expansion of customer base and business operations, safety, security, and sanitation of the area.
Choose your mode of operation: Automobile businesses, both merchandise, and services, usually operate in the offline mode only. This mode of operation is not only preferred by buyers but is also the only option for sellers and service providers in some cases.
Choose your name, logo, and brand: The name of your automobile business should be able to aptly communicate your field of business operations and your unique brand voice. For instance, the names Tata Motors or Hyundai Motor Company voice their brand names with “Motors” and “Motor Company” in the names indicating their field of operations. The name and logo of your business must not violate Section 4 of the Trademark Act, 1999 which states that the name of a new business must not mimic the name and logo of an existing business. You must also register the name and logo of your business to prevent others from copying and using them. At SetIndiaBiz , we provide expert assistance to our clients in Trademark registration of their new companies.
Get your funding, infrastructure, and logistics ready: Automobile businesses are capital intensive and need infrastructure, logistics, and heavy machinery to operate. This requires huge investments. Even services like cleaning, servicing, and repairing cannot operate without heavy machinery.
Choose the legal status of your company: Most automobile companies operating in India have a Private Limited Company status. However, the earnings and revenues in the industry are so high that even large businesses have found it beneficial to form partnerships for several reasons like manufacturing new products, rebranding,etc. For instance, Suzuki has partnered with drone manufacturing business Skydrive to develop high-tech, next-generation “flying cars” and Volkswagen has consolidated itself to rebrand as Skoda Auto in India.
Get registered and incorporated: Once you decide the legal status of your business, you can begin the process of registering and incorporating it. SetIndiaBiz will provide you with the necessary guidance and professional services concerning the same.
Get necessary licenses, certificates, approvals, and registrations to begin business operations: Once your automobile business is registered and incorporated, you need to get the necessary licenses and certificates. like any other business. Automotive Industry licenses, Tax, and GST registration , trading license, factory license (if required) EPF , ESIC , Contract Labour registration, pollution clearance certificate, EIN registration, fire safety certificate, etc are mandatory licenses that need to be obtained by an auto business in India. SetIndiaBiz offers all necessary services for obtaining licenses, registration, and certificates at an extremely affordable cost. To get detailed information, visit our website.
Get insurance: obtain important insurance covers for the safety of your business, property, product, and cover for the loss. Vehicle and commercial vehicle insurance are required for businesses like car rentals, delivery services, and passenger and freight transportation.
Hire staff: Businesses in the automotive industry require highly skilled and experienced employees. This might raise the labor cost for your business but would enhance its productivity in the long run.
Build a marketing team and channel: Online marketing has become a necessity for almost all kinds of businesses and products now. Additionally, many automotive businesses also publish their ads on print media like newspapers and magazines to promote their products. Broadcasting advertisements on television is also an effective way to market auto products and services.
Build a customer grievance and feedback system: Customer feedback is an important input for your business as it consistently gives you insights into their needs and convenience. This will help you improve the quality and competitiveness of products and services without the need of conducting market research and analysis of the same.
Organize a grand launching for your business: Invite potential customers, local industry leaders, competitors, suppliers, and other relevant guests to spread the word about your newly established business.

How can SetIndiaBiz help?

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How to do second hand car business in India

Indian economy is improving rapidly and this improvement is directly connected to automobile industry in India. If you are planning to start the business of buying and selling cars then, this can be a very good idea. Here is the information, which will help you to gather some knowledge on how to buy and sell used cars, how to do second hand car business in India.

How to start a car merchant business

Dealer license, location of the business, keep a watch on the market, make your catalog, use a perfect marketing strategy.

I really appreciate the author for giving a new way of hope for the aspiring persons who wants to have their try by doing second hand car business. It is indeed a good idea and great business probabilities are there. But please note that many people are already doing this business and we can find at least two or three such second hand car dealers in main market area. By the way one should not worry about the competition in the business and what one need is the regular procuring of used cars. For that one has to have tie up with new car show rooms where in the old cars are exchanged for the new. Now a days branded car shows rooms are having their own marketing strategy to convince the old car customer to buy a new car under easy installment and with good offer price for the old car. So in this circumstances having own sales force to procure used cars must be done in a more professional way. People may want to dispose their old car, but they postpone for various reasons. If the enterprising second hand car dealer approach such customers surely the business is going to be there. Moreover one should have the best knowledge about the cars and their prevailing second hand prices.

This is one of my favorite articles. Very informative details about second-hand car business has been shared by the author. I hope I can start my own business based on this article.

This article on the second-hand car business was useful to me. I would like to read more such articles.

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Pick from popular cities, skoda used car business to be launched in india.

As a key supplement to its India 2.0 plan, Skoda Auto India will venture into used cars.

Published On Sep 17, 2020 06:55:00 PM

59,311 Views

Skoda used car business to be launched in India

Following the Skoda Rapid Auto launch , Zac Hollis – director, Sales, Service and Marketing, Skoda Auto India said the company will “enter the used car business in the coming few weeks” at a round-table discussion with the media.

Will offer certified used Skodas.
Trade-ins will be multi brand.
India 2.0 plans on track for 2021.

Why is a used car business important for Skoda?

While most other companies have their own used car division, including sister brand Volkswagen and its Das WeltAuto business, Skoda, which has been in India since 2001, is yet to venture into this area.

The Czech carmaker, along with VW, has struggled in India and is thus refocusing its business plan under what the company calls its ‘India 2.0’ project. The project will see Skoda take charge of the entire India operations, an expansion of its network, and a flurry of new model launches in the mid to premium end of the market.

This makes the used car business an important tool for Skoda. Not only does it give its dealers some much-needed additional revenue, but it importantly enables existing car owners to trade in their cars for a new Skoda.

Skoda Auto India is mum so far on details like the brand name and the planned rollout, but it’s likely the company will equip and enable all of its dealers to offer the used car service.

What else does Skoda India have lined up?

Skoda Auto India’s plans for 2020 have been delayed a bit by the Coronavirus pandemic, which means the launch of the Kodiaq TSI petrol and the next-gen Octavia have been pushed to 2021. And while this year’s run of the Skoda Karoq is pretty much all spoken for, there’s no word on whether it will come back in a second batch of CBU imports, or with local assembly . However, Hollis mentioned that the launch of the India 2.0 project and the crucial production version of the Vision IN mid-size SUV are still on track, and that we will see the all-new Skoda mid-size sedan by the end of 2021.

Skoda Enyaq iV

Expected Price : ₹ 50.00 - 60.00 lakh

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₹ 12.28 - 20.48 lakh

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₹ 12.50 - 20.70 lakh

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₹ 34.79 - 38.25 lakh

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Volvo plans to expand used car business in India by early 2024, says official

The auto giant expects the old cars segment to account for 33 per cent or one-third of its total business, said a report..

In India, demand for second hand cars is on the rise. An evidence of this is a recent report -- prepared by Indian Bluebook and Das Welt Auto – which has estimated that the second hand and old cars market in the country is set to increase by nearly 20 per cent by 2026-27. Now, looking at the growth of this segment, Swedish auto giant Volvo is planning to widen its second hand cars business in the world's fifth-largest economy.

Also Read: Buy second hand models of these cars at the cost of iPhone Pro Max. Details here

Jyoti Malhotra, Managing Director, Volvo Cars India, said that under its ‘Selekt’ platform, the company has recently launched the used car business in India.

“We began as a pilot project. We want to expand gradually, and take it across our network here by the year 2023 or early 2024,” Malhotra was quoted as saying by Hindustan Times' sister publication Live Hindustan . Malhotra further said that if companies participate actively in the second hand cars market, customers will get good-quality cars at affordable prices.

Meanwhile, the report also stated that eventually, Volvo expects this segment to account for 33 per cent or one-third of its total business.

Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered. ...view detail

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Volvo Plans To Expand Its Used-Car Business Pan-India By Early 2024

By Seshan Vijayraghvan

3 mins read

Published on September 27, 2022

Volvo Cars India has said that it wants to expand its used car business pan-India by early 2024. The company, which recently launched a bunch of new cars in the Indian market, including the XC40 facelift, expects at least a third of its volumes to come from the used car business once the network is fully in place. Globally, the Swedish carmaker sells used cars through a separate pre-owned car vertical called ‘Volvo Selekt’ and the company recently launched it in India with two dealerships.

Speaking with the Press Trust of India (PTI), Jyoti Malhotra, Managing Director, Volvo Cars India said, “We have just started a pilot for our pre-owned certified car platform Volvo Selekt with two dealers in India. We want to expand it in phases, and we are looking to ensure that the platform is across our network by 2023 or early 2024.”

Also Read: 2022 Volvo XC40 Launched: Price, Features & Specifications

Malhotra says that used car volumes could gain a lot more traction if the segment is driven, by vehicle manufacturers. According to him, customers want quality, assurance, warranties, and the right inspection by manufacturers, when it comes to buying a used car. This way the seller gets the right price for the car, while the buyer in addition to the right price also gets quality and value. And that is the kind of model Volvo Cars India is working upon, says Jyoti Malhotra. He expects at least one-third of Volvo Cars’ volume to come from the used car platform once it is functional across the network in India.

Jyoti Malhotra, MD, Volvo Cars India expects at least one-third its volume to come from the used car platform.

As for the new car business, Volvo Cars India’s total sales stood at 1,724 units in 2021, which was 27 per cent higher than the 1,361 cars sold a year ago. And the company is optimistic about 2022 as well. Speaking with PTI, Malhotra said that the first half of 2022 has seen good demand with volumes spiking 17 per cent year-on-year at 800-odd units, and added, the July-December period of the year could see sales growing by 25 per cent. “Demand-wise, it is better as we have good order intake but are still constrained by supplies," he added. Malhotra estimates that the company could close the year (2022) at around 1,900- 2,000 cars which, in his view, will be a "decent growth" considering the supply-chain constraints.

According to the 2022 Indian Blue Book (IBB), the used car industry, was valued at $23 billion, Rs. 1,83,251 crore approximately, during the FY2021-22 fiscal year. The segment is expected to grow and expand at a Compound annual growth rate or CAGR of 19.5 per cent by FY2026-27, achieving a volume of 8 million units a year. In FY2022 the total volume of India’s used car market stood at around 4.4 million units.

Last Updated on September 27, 2022

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How To Open Automobile Repair Shop? [A Complete Guide]

Table of Contents:

1. How Do I Succeed In Auto Repair Business?

2. how to start a automobile repair shop, 3. types of equipment that you'll need to open an auto repair shop, 4. layout and structure for auto repair business, 5. what are the most profitable automobile repair shop ideas.

Do you have an interest in automobiles and want to open your auto repair business one day? It is impossible to own a vehicle, and not having to get it repaired, at some time or another. In India, more and more people are buying luxury cars, so the focus for repairs has shifted from cost to quality. Vehicles have become very technical, so most people take them to a workshop for even simple things like changing the oil.

So, an auto repair business is definitely a lucrative idea. An automobile repair workshop is a garage where modern vehicles are repaired by mechanics and technicians. It is a highly unorganised sector but has good potential. So, more and more entrepreneurs are entering this business to provide customers assured car services and repair. Like all other businesses, you have to put in a lot of time, money, and effort to be successful.

Starting an automobile repair workshop must figure in a list of top 10 small business ideas . However, it is better to start small and slowly build traction as the business grows. Another reason is that the equipment and tools are quite expensive, so you will need some time to build up your arsenal! Here, we describe how you can start an auto repair business:

Have A Business Plan- A clear business plan is necessary to make your enterprise a success. Make a business plan and define the scope of your operation. Determine how many customers can you manage in a day, and in what ways can you help them. You can either start an auto shop business from the scratch or buy an existing business. Starting a business from scratch means that you have to buy all the tools and equipment. Franchising is another option. Though the initial fees are high, you get the advantage of marketing and a national brand name.
Location- Starting an auto repair shop at a strategic location where there are not too many such services around will be a smart decision. It should also be close to main roads and highways, and at a centralised location concerning your customer base. If you have a garage or shed at home, you can start your business from there. One thing to note is that there should be enough space in the workshop to accommodate all your future needs.
Finance- To start this business, you have to make some investments or get a loan. You will need some funds to lease or rent your workshop space, buy the equipment, decorate the space, and put up a signboard. Your business’s break-even analysis will be based on the average running costs, including fixed costs such as utilities, rent, etc., and salaries. Your business plan will help you create a set of financial projections that will help you to secure investments or get a loan to start your shop. Managing cash flow can be a challenge for some auto shops. The minimum return on investment should be 30 percent per annum. The car repair service cost is an important factor while pricing the services.

4. Manpower- Modern cars have many high-tech features like lane-centering steering, adaptive cruise control, and Bluetooth entertainment systems, that take a lot of expertise. You have to hire highly-skilled, professional technicians who are trained to attend to any issues arising on the vehicles. The mechanics should be able to handle multiple types of car engines. People skills along with a caring personality are important in this job.

If you care about your work, you would need the right tools and equipment to get started. You can buy a lot of equipment second hand, where you can get a good deal.

Floor Jacks and jack-stands to lift up the cars.
A heavy-duty air compressor to power your garage.
Wrenches, belts, gear, shafts, and other specialty tools.
Oil drain bucket to hold coolant or oil.
Battery charger and jumper to jump cars, especially if they are towed to your garage.
Engine hoist for servicing engines.
Brake blades-buy a good brand because these are going to be your bread and butter.
A wall-mounted strut compressor will allow you to do suspension work on customer’s cars. Cars need to change their struts after around every 100,000 km. This gadget will help you to do that.
Working bays where you will service the cars.
A brake lathe.

All these types of equipment will help your business to be seamless, once it becomes operational.

Also read: Air Compressor Manufacturer in India

While starting an auto repair business , you have to carefully plan the layout of your shop. Since you will be using a clear-lift hoist, the ceiling should be at least 14 feet high. Also, the access must be wide enough for the customers to drive their cars in. Among the different areas, you will need a reception hall for customers, a car lift area, a workbench area, a warehouse to keep spare parts and tires, and an office.

The auto shop should maintain a uniform, professional appearance for customers, maximising space and improving the consumer experience. The waiting area should be nice because this is where the customers are going to sit while their cars are being serviced. Make sure to have a TV and a coffee vending machine installed to make them feel comfortable.

Cleanliness

It is very important to keep the workplace and the office area clean. This will convey a professional look and also impress the customers. Customers can judge the quality of work in your shop, by how clean the place is.

The major issues that affect auto repair shops are a lack of standardised service, transparency, and trust. You would need to build the right infrastructure to give great service. The range of services that your workshop can provide are:

Periodic maintenance and oil change
Body repairs and denting- painting
Wheel balancing
Brake and engine service
Repair and maintenance of fuel injection system.
Overhaul of clutch and suspension system
AC diagnostics and service.
Tire service
Automatic car wash

Your workshop can offer other value-added services like pick-up-and-drop, annual service maintenance plan, roadside assistance, cashless inspection and repair covered by insurance, etc. Other additional services might include the installation of customised alarm systems, the tinting of windows, and the beautification of the vehicle. Auto collision repair is another niche and profitable field.

All of the above require you to have proprietary knowledge, hi-tech tools, and software. You can also stock genuine spare parts because Original Equipment Manufacturer (OEM) parts are often difficult to obtain. You can also start an auto body shop and repair business. This will be able to fix any damage to a car or SUV. This includes glass and windshield replacement and paint refinishing.

Organisation

To avoid wasting resources, labor, and time in your auto shop, proper organisation is the key. Smart design and efficient use of space enhance aesthetics and streamline work. An efficient workshop should serve the daily needs of technicians, allowing them to work comfortably and efficiently. You have to make a catalog of all your special tools so that you don’t waste time looking for them. Wall systems and storage cabinets can be used to keep the tools and make the workspace clutter-free.

An organised auto-shop ensures ease of access for parts and tools, logical procedural sequences, and efficient use of space. Customer satisfaction should be your number one goal. You should form a tie-up with the major insurance service providers so that when a customer turns up with a damaged car, you can provide him with a cashless repair. This will be a seamless experience for the customer.

mechanic carrying tools in his hand against the car

Marketing Strategies

To keep your customers coming back, and to grow your business, you need to implement trackable marketing strategies. You can ask your satisfied customers to give you good reviews, which you can post on your social media page. You can list your business on any relevant business site like GoogleMy Business, and share relevant information like shop timings, prices of services, and more. All over the globe, the auto repair business is important, because there is a constant need to get cars fixed. So, this business will never be extinct, and there are lots of opportunities to make money in this venture.

1) How much does it cost you to start and run a YouTube Channel? 2) How to Start a Flower Shop Business in India? 3) How to start a Branded Clothing Store Business in India? Your A-to-Z Guide 4) Top 10 Things Every Business Owner Should Know & Do. 5) Automobile Companies in India

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Women comprise 46% of used car buyers in India this March: Spinny

Among metro cities, delhi-ncr saw the highest increase in women used car buyers at 48%. kochi saw a 57% spurt in women purchasing spinny cars. women buyers aged 30-40 years, preferred car models like the renault kwid, hyundai grand-i10, and maruti suzuki baleno..

By CNBCTV18.com March 28, 2024, 7:43:05 PM IST (Published)

Women comprise 46% of used car buyers in India this March: Spinny

The used car industry has seen an increase in the number of women buyers over the last few years. As per a report by used car retailing platform Spinny, in March 2024, women accounted for 46% of used car buyers in India. The study also found a 31% increase in women buyers in Q4 FY24.

In Q3 FY24, women accounted for 35% of buyers across the country in used car sales.

Among metro cities, Delhi-NCR observed the highest increase in women buyers at 48%, followed closely by Bengaluru at 41%, Mumbai at 46%, and Pune at 39% in March 2024, as per the report. In southern India, Kochi saw a 57% increase in women purchasing Spinny cars. Non-metro cities like Lucknow and Jaipur witnessed 20% growth in women buyers in the same period.

Women buyers aged 30-40 years, preferred car models like the Renault Kwid, Hyundai Grand-i10, and Maruti Suzuki Baleno.

Niraj Singh, CEO and Founder of Spinny said, “(Our) ‘Lady Luck' promotion, offered during the month of March, featured exclusive discounts of up to ₹25,000 on car purchases. The response from both men and women has been overwhelmingly positive, reinforcing our commitment to inclusivity and progress in the automotive industry.”

Singh added, “We are delighted that nowadays more women are meeting their evolving needs and embracing the secondhand car market.”

In its analysis, Spinny found a variety of factors responsible for the increase in used car sales among women, ranging from financial prudence to environmental consciousness and a desire for greater autonomy. In its release, the company said, “Spinny remains committed to providing tailored solutions and exceptional service to meet their evolving needs.”

Founded in 2015, Spinny has 40 car hubs and is operational in 22 cities, including Delhi, Gurugram, Noida, Bangalore, Mumbai, Pune, Hyderabad, Chennai, Kolkata, Ahmedabad, Lucknow, Jaipur, Chandigarh, and Indore, among others.

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How vast swarms of drones could transform the future of war

A small group of nations are developing plans to deploy drone swarms in war.
The drones could be used to take out air defenses, or for massed attacks.

In the doomsday scenario where tensions between China and the US erupt into conflict, the first hours of war may well look like a sci-fi movie.

Thousands of drones operating in a coordinated "swarm" could be deployed over China, hoovering up targeting information for US heavy weapons.

The scenario was sketched out in a recent document issued by the RAND Corporation, a US think tank.

The autonomous drones would use AI to inform US officials as they seek targets for precision missile strikes.

Though the scenario is speculative, and far from official US military doctrine, it is a glimpse of a plausible future, and one other countries are thinking about too.

In China, Israel, and Europe, military experts are devising plans for drone swarms that could transform the nature of conflict.

Drone swarms use cutting-edge technology derived from studying bird flocks and fish shoals to coordinate their movements across a potentially vast area.

They could enable militaries not just to surveil the enemy but be used as weapons to launch huge coordinated bombing attacks. But work remains to be done on identifying their most effective use.

"Drone swarms are useful for a broad range of military operations from finding and destroying submarines to blowing up tanks and cleaning out enemy air defenses," said Zak Kallenborn, an analyst who specializes in drones and weapons of mass destruction.

Kellenborn is the top researcher at Looking Glass USA, a counter-drone consultancy, and is also affiliated with the Center for Strategic and International Studies.

"Exactly which mission drone swarms are best suited to is unclear, but their potential is huge," he said. "The challenge is separating where drone swarms really matter from where they're mostly cool sci-fi stuff."

The threat they pose to militaries is so intense that military experts are already working on ways to counter their capabilities.

Ukraine supercharged drone combat

The invasion of Ukraine has transformed the way drones are being used in war. In the conflict, cheap, airborne drones have been deployed for tasks from surveillance to bombings and even directing the surrender of enemy soldiers.

Drones have also proved their worth at sea and on land.

US military planners are studying the conflict for clues about how to deploy drones for the wars of the future.

"Everybody in the Western military establishments is eagerly trying to understand and digest insights coming out of the war in Ukraine," said David Ochmanek, an analyst at the RAND Corporation.

"This sounds awful this way, but we don't have very many opportunities to learn from real-world, large-scale combat," he told BI.

Until recently, some military experts argued that drones were too easy to shoot down, and would likely only feature in wars between poorer nations without the resources to counter them.

But the lesson from Ukraine, Ochmanek believes, is that drones will feature in conflicts involving even the most powerful nations — on an even larger scale in Ukraine.

Instead of deploying individual drones, each of which is controlled by a single human operator, as in Ukraine, the US could field massive swarms of drones operating autonomously.

In the early hours of a conflict with a major power, such as China, they could help the US secure a key advantage, said Ochmanek.

"We have to find a way in the opening hours of a conflict with China, not weeks or days, but hours, to characterize what's happening in that battlespace, identify the targets of greatest interest, track those targets, and engage them to destroy them," said Ochmanek.

China seeks to neutralize US war plans

For years, a problem has bedeviled US military planners.

Back in the 1990s and early 2000s, the US developed tactics to rapidly wipe out an enemy's command systems and air defenses using a combination of satellite surveillance and precision-guided missiles.

The tactics were deployed to devastating effect by the US against Iraq in both 1991 and 2003. The US obliterated Iraqi air defenses in a matter of hours, giving it control of the battlefield and air space.

China, which was rapidly gaining economic and military might, was watching, and urgently upgraded its military and refined its tactics.

It found ways to move or conceal its air defense systems and other potential targets, making them difficult for the US to locate and potentially destroy, said Ochmanek. It also developed technology to shield the location of weapons and other key sites from satellites by "dazzling" them, say US military analysts.

The US was sent back to the drawing board, seeking to regain its advantage. And that, says Ochmanek, is where drones could come in.

A drone swarm offers key advantages in identifying targets in the early hours of a conflict.

They can deployed in such vast numbers that they overwhelm air defense systems. Once there, they can relay live data to human operators who would use it to guide precision missile attacks.

Even though the US uses drones far more expensive than the ones in Ukraine, they are still very cheap compared to a lot of military gear, like fighter jets.

"The drone swarm looks to us like a robust way to do what we need to do to gain the information we need so that the limited lethality we can generate in those opening hours and days of war is applied effectively and efficiently," said Ochmanek.

Killer robots

But critics are warning that the drone swarms could usher in a terrifying future .

Under the drone swarm plans envisaged by military experts, the machines rely on humans as decision-makers before any actual attacks are made. The drones only give information.

It would not be a big technological leap to give the drones power to make those decisions themselves too.

But the prospect of crossing that moral boundary is raising the alarm.

At the United Nations last year, several countries called for restrictions on the development and use of autonomous drones capable of making life-and-death decisions.

The US and China both opposed that plan, arguing that current restrictions on using any weapons to indiscriminately target civilians were sufficient to preclude a future of killer robots.

Kallenborn, the analyst, does support more explicit restrictions, arguing that drone swarms could be considered weapons of mass destruction and therefore need to be banned.

A key problem, he said, is that the technology can make mistakes. And because the drones communicate with each other, one mistake could rapidly spread and multiply.

"Autonomous, armed drone swarms should have restrictions on their use, especially drone swarms targeting humans. We know that autonomous weapons are prone to mistakes; a drone swarm scales that risk a thousandfold," said Kallenborn.

"A sensor drone might misidentify a school bus as a tank, and tell 10 other drones to blow it up too," he said.

Ochmanek stressed that targeting decisions for drone swarms should still be made by humans, with AI only synthesizing the data.

"As long as there's a communication link between the mesh and human operators in the rear, humans will be evaluating for themselves the extent to which the mesh is making accurate assessments," he said.

Countering the swarms

As well as developing plans to deploy drone swarms, defense companies are working on a playbook for countering them.

Research is underway on how to take them out using lasers or microwaves , though both approaches have drawbacks of their own.

Another possibility, said Ochmanek, is that drone swarms could be programmed to target other drone swarms.

So far, he added, no magic bullet had been found to counter the swarms. And despite fears about their autonomy, they seem poised to play a central role in the wars of the future.

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In big win for Tesla, India to lower EV import tax if $500 mln invested

Opening of the first Tesla store in Chile, in Santiago

New EV policy comes after months of lobbying by Tesla
Import tax rate on EVs lowered to 15% vs up to 100% for 5 years
Lower rate dependent on meeting investment, production criteria
Local carmakers Mahindra, Tata had opposed import tax cut, shares fall

TESLA VS RIVALS

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Reporting by Tanvi Mehta and Aditi Shah; additional reporting by Aditya Kalra and Aftab Ahmed in New Delhi, Chris Thomas in Bengaluru; editing by YP Rajesh, Jason Neely and Kim Coghill, Kirsten Donovan

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UPS to replace FedEx as U.S. Postal Service's primary air cargo provider

United Parcel Service will become the United States Postal Service's (USPS) primary air cargo provider, the company said on Monday, as rival FedEx announced an end to its more than 20-year partnership with the postal service provider.

Hyundai dominates Tata Motors to regain No. 2 spot in Indian car market

Hyundai Motor India has reclaimed its position as the second-largest passenger vehicle manufacturer in India, after briefly losing the spot to Tata Motors in February 2024.

In March 2024, Hyundai's domestic sales rose by 5% to 53,001 units, compared to 50,600 units in the same period last year. This comes after a surprising dip in February when Hyundai sold just 50,201 units, allowing Tata Motors to overtake it with 51,321 units.

In comparison, Tata Motors' passenger vehicle division, which includes sales from Tata Motors Passenger Vehicles Limited and Tata Passenger Electric Mobility Limited, recorded sales of 50,297 units in March 2024, up 14% from 44,225 units in March 2023.

The recent launch of the Creta Facelift in India generated significant demand for the SUV in the first month, but the hype seems to have subsided, resulting in lower sales in February. However, Hyundai's strong performance in March helped the company regain its position in the market.

Unlike Tata Motors, Hyundai also gets decent volumes from exports. In March, exports saw significant growth of 16% to 12,600 units, compared to 10,900 units in the year-ago period. This strong export performance further solidifies Hyundai's position in the Indian automotive market.

Coming to full-year numbers, Hyundai Motor India achieved its best-ever sales of 7.78 lakh units, marking an 8% increase over the 7.21 lakh units sold in FY 2022-23.

In the domestic market, Hyundai dispatched 6.15 lakh units to its dealers, an 8% increase from the 5,67,546 units in FY 2022-23. Exports also grew by 7% to 1.63 lakh units.

In comparison Tata Motors' passenger vehicle sales stood at 5.73 lakh units, up 6% from FY 2023.

Tata Motors' Overall Performance

Tata Motors, as a company, registered total sales of 90,822 units in March 2024, a 2% increase compared to 89,351 units in March 2023. For the entire Q4 FY24, Tata Motors recorded sales of 2,65,090 units, a 5% increase from 2,51,822 units in Q4 FY23.

The commercial vehicle (CV) segment saw a decline in March 2024, with total CV sales of 42,262 units, down 10% from 46,823 units in March 2023. Domestic CV sales stood at 40,712 units, a 10% decrease compared to 45,307 units in the same month last year.

For the full financial year, Tata Motors' CV sales totaled 3,95,845 units, a 4% decrease from FY 2023. The company attributed the moderation in sales growth to a high base, elections across 5 states in Q3 FY24, and upcoming general elections in Q1 FY25.

In Q4 FY24, Tata Motors' CV sales stood at 1,09,439 units, a 6% decline from 1,16,168 units in Q4 FY23. Girish Wagh, Executive Director of Tata Motors, stated that the demand for commercial vehicles is expected to improve from the latter half of Q2 FY25, driven by promising GDP growth outlook, government incentives, and a focus on infrastructure-related developmental projects.

Tata Motors' EV Sales

Tata Motors' electric vehicle (EV) sales, which include both domestic and international business, grew by 4% to 6,738 units in March 2024, compared to 6,509 units in March 2023. For Q4 FY24, the company sold 20,640 EV units, registering a strong 29% growth compared to Q4 FY23.

In the full financial year FY 2024, Tata Motors' EV sales grew by 48% to 73,833 units, compared to 50,043 units in FY 2023. However, the company fell short of its target of reaching 100,000 EV units during the year.

Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., noted that the EV segment is projected to post robust growth of 70% for the Indian market as a whole in FY24 compared to FY23, driven by multiple new launches, growing charging infrastructure, significantly lower operating costs, and increasing environmental consciousness among customers.

The company has been investing heavily in the development of new EV models, expanding its charging infrastructure, and collaborating with stakeholders to create an ecosystem that supports the adoption of electric vehicles in India.

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